US close: Markets move higher, but IBM weighs on Dow
US stocks moved higher on Monday after a relatively slow start, as investors were set to focus on companies’ earnings, including Apple's, due after the close of trading.
The Dow Jones Industrial Average closed up 0.12% to 16,399 points, while the S&P 500 gained 0.91% to 1,904.02 points and the Nasdaq closed up 1.35% to 4,316.07 points.
The earnings season gets into full swing throughout the week as earnings for over 100 US companies are set to be released, with investors be hoping for stronger numbers in a bid to make up the recent losses.
Dallas Federal Reserve president Richard Fisher said that he will support ending the central bank’s bond-buying programme next week as scheduled.
On Monday, Fisher told CNBC that he was not concerned by the volatility that hampered the markets last week, adding he did not think inflation was trending lower.
Fisher’s comments came in response to St. Louis Fed President James Bullard’s suggestion that the $15 billion-per-month purchase programme should be extended until December. Bullard, whose initiative is yet to receive any support from Fed officials, last week suggested that the programme should be extended due to concerns about declining inflation expectations.
In corporate news, International Business Machines (IBM), the second-biggest stock in the Dow Jones Industrial Average as of last week, fell 7.11% after posting lower than expected earnings in its third quarter.
Sales at the technology giant fell across several divisions and IBM has now failed to generate a revenue increase for 10 straight quarters. The firm unveiled a deal to transfer its semiconductor operations to Globalfoundries Inc, with IBM paying $1.5bn to the semiconductor company which will take over chip manufacturing operations.
Technology firms in the S&P 500 dropped 0.5%, with Oracle losing 0.18% and CSX dropping 1.03% after announcing that talks over a proposed merger with Canadian Pacific Railway ended.
Apple gained 2.14% ahead of its quarterly earnings report, with analysts estimating that the iPhone maker’s profit rose 10%. Chipotle shares fell 2% after the bell, as the firm announced that its third quarter result had exceeded estimates but reported higher costs.
In the first session of the week, the dollar was in retreat against the pound, the euro and the yen.
The price of West Texas intermediate crude fell by a tenth of a percentage point as oil traded at just over $82.6 a barrel, while gold futures edged forward 0.59% to $1.246.30.
The yield on the 10-year Treasury note dropped one basis points to 2.19%, while the yield on the 30-year Treasury note fell by the same margin to 2.96 and the yield on the five-year note fell two basis points to 1.40.
S&P 500 - Risers
Tesoro Corp. (TSO) $65.43 +8.36%
Southwest Airlines Co. (LUV) $32.84 +5.76%
Gannett Co. Inc. (GCI) $29.08 +5.02%
Hasbro Inc (HAS) $56.51 +4.94%
Delta Airlines Inc. (DAL) $36.04 +4.80%
Celgene Corp. (CELG) $92.00 +4.40%
QEP Resources Inc (QEP) $24.17 +4.27%
Covidien Plc (COV) $85.44 +3.94%
Keurig Green Mountain Inc (GMCR) $143.03 +3.86%
International Paper Co. (IP) $48.39 +3.71%
S&P 500 - Fallers
International Business Machines Corp. (IBM) $169.10 -7.11%
Peabody Energy Corp. (BTU) $10.46 -5.17%
Teradata Corp. (TDC) $40.70 -3.76%
Joy Global Inc. (JOY) $51.14 -1.97%
Range Resources Corp. (RRC) $66.29 -1.53%
Cognizant Technology Solutions Corp. (CTSH) $43.57 -1.43%
Cisco Systems Inc. (CSCO) $22.93 -1.38%
Deere & Co. (DE) $82.20 -1.31%
Jacobs Engineering Group Inc. (JEC) $45.40 -1.22%
Dentsply International Inc. (XRAY) $44.77 -1.17%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $85.52 +2.02%
Nike Inc. (NKE) $88.90 +1.97%
Home Depot Inc. (HD) $91.85 +1.78%
American Express Co. (AXP) $84.01 +1.73%
Wal-Mart Stores Inc. (WMT) $75.14 +1.40%
E.I. du Pont de Nemours and Co. (DD) $67.81 +1.24%
Procter & Gamble Co. (PG) $84.18 +1.09%
Microsoft Corp. (MSFT) $44.08 +1.03%
Coca-Cola Co. (KO) $43.29 +0.96%
Visa Inc. (V) $207.85 +0.90%
Dow Jones I.A - Fallers
International Business Machines Corp. (IBM) $169.10 -7.11%
Cisco Systems Inc. (CSCO) $22.93 -1.38%
Caterpillar Inc. (CAT) $94.03 -1.07%
Chevron Corp. (CVX) $111.49 -0.28%
United Technologies Corp. (UTX) $101.48 -0.05%
Travelers Company Inc. (TRV) $93.20 -0.04%
Nasdaq 100 - Risers
Celgene Corp. (CELG) $92.00 +4.40%
Keurig Green Mountain Inc (GMCR) $143.03 +3.86%
Expedia Inc. (EXPE) $77.25 +3.59%
Monster Beverage Corp (MNST) $95.33 +3.50%
Micron Technology Inc. (MU) $29.69 +3.22%
Intuitive Surgical Inc. (ISRG) $485.28 +3.20%
Staples Inc. (SPLS) $12.30 +3.19%
TripAdvisor Inc. (TRIP) $83.54 +3.07%
Charter Communications Inc. (CHTR) $148.18 +3.05%
Costco Wholesale Corp. (COST) $128.42 +3.02%
Nasdaq 100 - Fallers
Cognizant Technology Solutions Corp. (CTSH) $43.57 -1.43%
Cisco Systems Inc. (CSCO) $22.93 -1.38%
Equinix Inc. (EQIX) $203.68 -1.31%
Regeneron Pharmaceuticals Inc. (REGN) $366.13 -0.95%
PACCAR Inc. (PCAR) $57.92 -0.82%
NetApp Inc. (NTAP) $38.54 -0.72%
F5 Networks Inc. (FFIV) $112.88 -0.72%
Viacom Inc. Class B (VIAB) $69.00 -0.45%
Wynn Resorts Ltd. (WYNN) $181.66 -0.43%
Illumina Inc. (ILMN) $164.47 -0.27%